Transforming Leaders - Strategic Thinking Workshop
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Clive Smallman explores new thinking around strategic thinking. Current events are demanding strategic change in lots of businesses and for lots of people. Yes, change is a constant, but right now it feels like the only game in town. Transforming strategy requires critical and systematic thinking, but it’ll always have an air of subjectivity too. That’s the gap between analysis and decision-making. For some the gap’s the point at which “the magic happens”. Would you like more magic?
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Transforming Leaders - Strategic Thinking Workshop
- 1. Transforming Leaders: Strategic Thinking for Transformation
- 2. THE WORLD CHANGES: THE SINGULARITY
- 3. CURRENCY:PEOPLE,OPERATIONS,MONEY GoodBad Breakeven Loss Insolvency Profit Normality Disruption Continuity Recovery TIME New Normality
- 5. ARCHITECTURAL INNOVATION RADICAL INNOVATION INCREMENTAL INNOVATION DISRUPTIVE INNOVATION CHANGES IN COST DRIVERS & OTHER REVENUE DYNAMICS SubstantialMinimal CUSTOMERSEGMENTS NewExisting PIVOT PIVOT WHERE DO YOU WANT TO BE?
- 8. THE “MAGIC” OF THINKING
- 9. STRATEGIC THINKING FOR TRANSFORMATION ENVIRONMENTAL CHALLENGES ORGANISATIONAL PROBLEMS TRANSFORMATIONAL ROAD MAP CRITICAL ASSESSMENT
- 10. DO YOU WANT TO LEARN TO THINK CONSCIOUSLY? DEEPLY?
- 11. THINK WHERE AM I NOW? WHERE DO I WANT TO BE? WHAT DO I NEED TO DO TO GET THERE?
- 12. STRATEGIC THINKING FOR TRANSFORMATION ENVIRONMENTAL CHALLENGES ORGANISATIONAL PROBLEMS TRANSFORMATIONAL ROAD MAP CRITICAL ASSESSMENT
- 13. CRITICAL THINKING PROCESS WHAT IS YOUR GOAL IN ASSESSING AN AUTHORITATIVE POSITION? WHO SAID IT? WHAT DID THEY SAY? WHERE DID THEY SAY IT? WHEN DID THEY SAY IT? FOR WHAT REASON DID THEY SAY IT? HOW COULD THEY SAY IT?
- 14. SKILLS FOR CRITICAL THINKING PERCEPTION INVESTIGAT -ION ELUCIDATION REFLECTION ASSESSMENT DERIVATION CLARIFICATION EXPLICIT THINKING BASIC LEADERSHIP
- 15. SOFT SYSTEMS METHODOLOGY ENTER PROBLEMATIC SITUATION EXPRESS THE PROBLEM SITUATION FORMULATE ‘ROOT DEFINITIONS’ BUILD CONCEPTUAL MODELS COMPARE MODELS WITH THE REAL WORLDDEFINE FEASIBLE & POSSIBLE CHANGES TAKE ACTION TO IMPROVE THE PROBLEM SITUATION C A T W O E
- 16. ROOT DEFINITIONCUSTOMERS ACTORS TRANSFORMATION PROCESS WORLDVIEW OWNER ENVIRONMENTAL CONSTRAINTS
- 18. STRATEGIC THINKING FOR TRANSFORMATION ENVIRONMENTAL CHALLENGES ORGANISATIONAL PROBLEMS TRANSFORMATIONAL ROAD MAP CRITICAL ASSESSMENT
- 20. JOIN FUTURE TRANSFORMING LEADERS WORKSHOP SERIES ON LINKEDIN
- 21. “WE CANNOT SOLVE OUR PROBLEMS WITH THE SAME THINKING WE USED WHEN WE CREATED THEM.” - ALBERT EINSTEIN
- 22. EDUCATOR | AUTHOR MENTOR | THINKER Transforming Leaders Transforming Business Transforming Life www.clivesmallman.com clive@clivesmallman.com
Editor's Notes
- WELCOME. SOME SIMPLE RULES: HAVE YOU GOT A CUP OF TEA OR COFFEE OR A GLASS OF WATER? HAVE YOU GOT MEANS OF TAKING NOTES? SWITCH OFF YOUR PHONE WHAT ARE WE GOING TO TALK ABOUT? FIRST, I’LL PUT SOME CONTEXT AROUND THE WORKSHOP – WHAT I’M TALKING ABOUT, WHY IT’S IMPORTANT AND WHAT YOU CAN HOPE TO ACHIEVE. IF YOU’VE BEEN IN MY EARLIER WORKSHOP, YOU’LL RECONISE A LOT OF THIS THEN THE CONTENT AROUND STRATEGIC THINKING IN CLOSING I’M GOING TO LET YOU KNOW BRIEFLY ABOUT A NEW MENTORING PROGRAMME I HAVE, AND ABOUT THE REST OF MY LINKEDIN WORKSHOP SERIES ON TRANSFORMING LEADERS YOU CAN ASK QUESTIONS IN THE CHAT BOX ALL THE WAY THROUGH AND THERE’LL BE TIME AT THE END AS WELL. THE WORKSHOP IS BEING RECORDED AND THERE’LL BE A COPY ON MY WEBSITE SOMETIME OVER THE NEXT COUPLE OF DAYS. IF YOU WANT A COPY OF THE SLIDES, I’LL LET YOU KNOW HOW AT THE END.
- 1, WHY THIS MESSAGE? THE WORLD IS ALWAYS CHANGING – THAT’S LIFE BUT IT’S ALL GOT THAT BIT HARDER RECENTLY WITH A SINGULAR EVENT PROBABLY SOMEWHERE IN CHINA LEADING TO A CATASTROPHIC PANDEMIC CLASSIC COMPLEXITY THEORY – PROBABLY A BAT STEW CONSUMED BY ONE LEADS TO TODAY’S W.H.O. STATISTICS 133,611 NEW CASES 9,129,146 CONFIRMED CASES 473,797 DEATH IT HAS BECOME A SINGULARITY, A TIPPING POINT WITH HEALTH, POLITICAL, ECONOMIC, SOCIAL AND TECHNOLOGICAL IMPACTS DRIVING CHANGE, IT HAS TO TRANSFORMING STRATEGY REQUIRES CRITICAL AND SYSTEMATIC THINKING, BUT IT’LL ALWAYS HAVE AN AIR OF SUBJECTIVITY TOO. THAT’S THE GAP BETWEEN ANALYSIS AND DECISION-MAKING. FOR SOME THE GAP’S THE POINT AT WHICH “THE MAGIC HAPPENS”. WOULD YOU LIKE MORE MAGIC?
- 2. WHY THIS MESSAGE NOW? THE QUESTION IS WHAT DO WE, IN BUSINESS IN PARTICUAR DO WHEN WE NEED TO THINK THROUGH THE CHALLENGES PROVIDED BY DISRUPTION IT’S A PECULIAR TYPE OF DISRUPTION, BUT A DISRUPTION NEVERTHELESS, AND IT’S A QUESTION OF WHAT WE DO [DISCUSS THE CHART] WHERE ARE YOU ON THIS CRITICAL CURVE?
- 6. WHY SHOULD THEY CARE? IN DISRUPTIONS OR IN ‘NORMAL’ TIMES. WE ALL FACE CRUCIAL CHOICES IN WORK, BUSINESS AND LIFE. THERE ARE COMMON PAIN POINTS: PEOPLE LOSE THEIR JOB OR ARE AT RISK OF LOSING IT; MANY LONG TO DEVELOP THEIR OWN BUSINESS; SOME WANT A NEW JOB, TO REINFORCE THEIR CURRENT POSITION, OR TO FAST-TRACK THEIR CAREERS; PERFORMANCE SHORTFALLS; OR CHANGE PROJECTS THAT FAIL. WHOEVER THESE PEOPLE ARE, THEY’RE LOOKING FOR THE MEANS TO DISTINCTIVELY IMPACT PEOPLE, ORGANISATIONS AND COMMUNITY THROUGH TRANSFORMING LEADERSHIP, BUSINESS AND LIFE PART OF DEVELOPING YOUR IMPACT INVOLVES THINKING CHALLENGES THRUGH
- 9. WHAT’S WRONG WITH MY MESSAGE? ARE YOU ONE OF THOSE PEOPLE? DO YOU WANT TO IMPROVE YOUR EMPLOYMENT PROSPECTS? DEVELOP A STRATEGY TO CREATE, TRANSFORM OR GROW YOUR OWN BUSINESS? CHANGE YOUR JOB, REINFORCE YOUR CURRENT POSITION OR FAST-TRACK YOUR CAREER? IMPROVE PERFORMANCE? ASSURE THAT CHANGE MANAGEMENT IS EFFECTIVE? IT’S EASY RIGHT? YEAH-NO PIVOTING IS A TOUGH GIG, SHIFTING EVEN MORE SO BUT IT IS FEASIBLE AND POSSIBLE WITH SOME INTENSIVE WORK, ESPICALLY WITH GOOD GUIDANCE AND ACCOUNTABILITY THE OLD SAYING GOES ‘THE BEST TIME TO PLANT A TREE WAS 20 YEARS AGO, THE SECOND-BEST TIME IS NOW’. HOW ABOUT STARTING ON YOUR OWN FOREST? AGAIN WE NEED TO THINK THIS THROUGH
- 10. WHAT’S IT LIKE? YOU’LL HAVE COME ACROSS SOME OF THE IDEAS I;M GOING TO TALK ABOUT BEFORE. THESE ARE SOME OF MY INFLUENCES, WHICH I’VE BUILT ON
- 11. WHAT’S IT ABOUT? STRATEGIC THINKING IS ABOUT KNOWING HOW TO CRITICALLY ASSESS PROBLEMATIC SITUATIONS IN ORGANISATIONS THAT COME FROM CHALLENGES IN YOUR BUSINESS’S OPERATING CONTEXT, IT’S ABOUT RELEASING YOUR INNER SHERLOCK
- 12. WHAT’S IN IT FOR ME? IMPROVED STRATEGIC THINKING LEADS TO IMPROVED PERSONAL AND PROFESSIONAL PERFORMANCE IMPROVED BUSINESS PERFORMANCE
- 13. WHAT’S MY POINT? MY POINT IS THAT STRATEGC THINKING FOR TRANSFORMATION ISN’T MAGICAL; MOST MAGIC IS ILLUSION I RECKON THERE ARE FOUR MAIN ELEMENTS TO STRATEGIC THINKING. AND A COUPLE OF METHODS YOU CAN USE [WORK THROUGH THE CHART]
- 14. WHY IS IT DIFFERENT? WHERE YOU EVER TAUGHT TO THINK? THE ANSWER IS YES FOR SOME OF YOU, ESPEICALLY IF YOU DID A COURSE ON PHILOSOPHY OR AN ARTS DEGREE INVOLVING CRITICISM BUT FOR MOST FOLK RATHER LIKE WE’RE NOT TAUGHT TO LEARN, WE’RE NOT TAUGHT TO THINK MEDITATION CALLS FOR AN EMPTY BRAIN MINDFULNESS CALL FOR ONE THAT IS FULL OF THE PRESENT THINKING NEEDS TO BE CONSCIOUS AND DEEP
- 15. WHAT SHOULD THEY DO? AS I WALK THROUGH MY THINKING AROUND THE SIX STEPS, I WANT YOU TO THINK TO, ABOUT THESE THREE THINGS
- STRATEGIC THINKING FOR TRANSFORMATION INVOLVES KNOWING HOW TO CRITICALLY ASSESS ORGANISATIONAL PROBLEM SITUATIONS ARISING FROM ENVIRONMENTAL CHALLENGES AND THEN TO DESIGN A ROAD MAP FOR LEADING CONTEXTUALLY RELEVANT STRATEGIC TRANSFORMATIONS LEADERSHIP THINKING FOR STRATEGIC TRANSFORMATION SHOULD: PRODUCE TEAM-BASED OUTCOMES THAT PRESCRIBE REQUIRED ORGANIZATIONAL TRANSFORMATIONS SHOW HOW CHANGE CAN BE ACHIEVED THROUGH CONCEPTUAL MODELLING AND STRATEGY ROAD MAPS TRANSLATE COMPLICATED PROBLEM SITUATIONS INTO AREAS THAT ARE CLEARLY DEFINED AND MANAGEABLE APPLY SYSTEMATIC METHODS THAT CAN ASSIST LEADERSHIP IN THE FUTURE AND OFFER SYSTEMATIC PROBLEM ANALYSIS EVEN IN SOCIO-ECONOMIC SITUATIONS THAT LIE BEYOND ORGANISATIONAL BOUNDARIES THE METHODS I USE ARE CRITICAL THINKING AND SOFT SYSTEMS MMETHODOLOGY [WORK THROUGH THE CHART] NETFLIX, IS A CASE IN POINT. IN 2013, CEO REED HASTINGS RELEASED AN 11-PAGE MEMO TO EMPLOYEES AND INVESTORS DETAILING A COMMITMENT TO MOVE FROM JUST DISTRIBUTING CONTENT DIGITALLY TO BECOME A LEADING PRODUCER OF ORIGINAL CONTENT THAT COULD WIN EMMYS AND OSCARS. AS THE MEMO SAID, “WE DON‛T AND CAN‛T COMPETE ON BREADTH WITH COMCAST, SKY, AMAZON, APPLE, MICROSOFT, SONY, OR GOOGLE. FOR US TO BE HUGELY SUCCESSFUL WE HAVE TO BE A FOCUSED PASSION BRAND. STARBUCKS, NOT 7-ELEVEN. SOUTHWEST, NOT UNITED. HBO, NOT DISH.” SINCE UNVEILING THAT NEW PURPOSE, BY 2019, NETFLIX REVENUE HAD ROUGHLY TRIPLED, ITS PROFITS MULTIPLIED 32-FOLD, AND ITS STOCK CAGR HAD INCREASED 57% ANNUALLY, VERSUS 11% FOR THE S&P 500.
- CRITICAL THINKING IS THE CAPACITY TO THINK PLAINLY AND REASONABLY, UNDERSTANDING THE CONSISTENT ASSOCIATION BETWEEN THOUGHTS. IT'S THE CAPACITY TO TAKE PART IN INTELLIGENT AND AUTONOMOUS REASONING. IT FUNDAMENTALLY EXPECTS YOU TO UTILISE YOUR CAPACITY TO REASON. IT'S ABOUT BEING A FUNCTIONING STUDENT AS OPPOSED TO A SEMIDISCONNECTED BENEFICIARY OF DATA. IT QUESTIONS THOUGHTS AND PRESUMPTIONS INSTEAD OF TOLERATING THEM WITHOUT NEEDING ANY PROOF. YOU TRY TO DECIDE IF THE THOUGHTS, CONTENTIONS, AND DISCOVERIES SPEAK TO THE WHOLE PICTURE AND ARE OPEN TO TO FINDING AND ACCEPTING THAT THEY DON'T. [WORK THROUGH THE CHART] ANOTHER, SIMPLER WAY IS TO USE MY FAVOURITE SIX HONEST SERVANTS: WHO, WHAT, WHERE,WHEN, HOW AND WHY ECONOMIC UNCERTAINTY, CLIMATE CHANGE, POLITICAL UPHEAVAL … RISKS ABOUND IN THE MODERN WORKFORCE, AND IT‛S AN EMPLOYEE‛S CRITICAL THINKING SKILLS THAT WILL ENABLE A BUSINESS TO ASSESS THESE HAZARDS AND ACT ON THEM. RISK ASSESSMENT OCCURS IN A NUMBER OF DIFFERENT SCENARIOS. FOR EXAMPLE, A CONSTRUCTION COMPANY HAS TO IDENTIFY ALL POTENTIAL HAZARDS ON A BUILDING SITE TO ENSURE ITS EMPLOYEES ARE WORKING AS SAFELY AS POSSIBLE. WITHOUT THIS ANALYSIS, THERE COULD BE INJURIES OR EVEN DEATHS, CAUSING SEVERE DISTRESS TO THE WORKFORCE AND NEGATIVELY IMPACTING THE COMPANY‛S REPUTATION (NOT TO MENTION ANY OF THE LEGAL CONSEQUENCES). IN THE FINANCE INDUSTRY, ORGANISATIONS HAVE TO ASSESS THE POTENTIAL IMPACTS OF NEW LEGISLATION ON THE WAY THEY WORK, AS WELL AS HOW THE NEW LAW WILL AFFECT THEIR CLIENTS. THIS REQUIRES CRITICAL THINKING SKILLS SUCH AS ANALYSIS, CREATIVITY (IMAGINING DIFFERENT SCENARIOS ARISING FROM THE LEGISLATION) AND PROBLEM-SOLVING (FINDING A WAY TO WORK WITH THE NEW LEGISLATION). IF THE FINANCIAL INSTITUTION IN THIS EXAMPLE DOESN‛T UTILISE THESE CRITICAL THINKING SKILLS, IT COULD END UP LOSING PROFIT OR EVEN SUFFERING LEGAL CONSEQUENCES FROM NON-COMPLIANCE.
- CRITICAL THINKING HAS THREE CENTRAL APTITUDES: INTEREST IS CRAVING TO ADOPT MORE DATA AND LOOK FOR PROOFS JUST AS BEING AVAILABLE TO NEW THOUGHTS WARINESS INCLUDES HAVING A SOLID INTERROGATING DISPOSITION CONCERNING NEW DATA THAT YOU ARE PRESENTED WITH AND NOT INDISCRIMINATELY THINKING EVERYTHING EVERYBODY LETS YOU KNOW. QUIETUDE IS THE CAPACITY TO CONCEDE THAT YOUR SENTIMENTS AND THOUGHTS AREN'T RIGHT WHEN LOOKED WITH NEW PERSUADING PROOF THAT STATES GENERALLY. THERE APTITUDES INCORPORATE 12 SKILLS, LISTED ABOVE. [WORK THROUGH THE CHART] IN THE DIGITAL AGE CRITICAL THINKING HAS BECOME EVEN MORE, WELL, CRITICAL. WHILE MACHINES HAVE THE ABILITY TO COLLATE HUGE AMOUNTS OF INFORMATION AND REPRODUCE IT IN A READABLE FORMAT, THE ABILITY TO ANALYSE AND ACT ON THIS DATA IS STILL A SKILL ONLY HUMANS POSSESS. TAKE AN ACCOUNTANT. MANY OF THEIR MORE MUNDANE TASKS HAVE PASSED TO TECHNOLOGY. ACCOUNTING PLATFORMS HAVE THE ABILITY TO PRODUCE PROFIT AND LOSS STATEMENTS, PREPARE ACCOUNTS, ISSUE INVOICES AND CREATE BALANCE SHEETS. BUT THAT DOESN‛T MEAN ACCOUNTANTS ARE OUT OF A JOB. INSTEAD, THEY CAN NOW FOCUS THEIR EFFORTS ON ADDING REAL VALUE TO THEIR CLIENTS BY INTERPRETING THE DATA THIS TECHNOLOGY HAS COLLATED AND USING IT TO GIVE RECOMMENDATIONS ON HOW TO IMPROVE. ON A WIDER SCALE, THEY CAN LOOK AT HISTORIC FINANCIAL TRENDS AND USE THIS DATA TO FORECAST POTENTIAL RISKS OR STUMBLING BLOCKS MOVING FORWARD. THE CORE SKILL IN ALL OF THESE ACTIVITIES IS CRITICAL THINKING – BEING ABLE TO ANALYSE A LARGE AMOUNT OF INFORMATION AND DRAW CONCLUSIONS IN ORDER TO MAKE BETTER DECISIONS FOR THE FUTURE. WITHOUT THESE CRITICAL THINKERS, AN ORGANISATION MAY EASILY FALL BEHIND ITS COMPETITORS, WHO ARE ABLE TO RESPOND TO RISKS MORE EASILY AND PROVIDE MORE VALUE TO CLIENTS.
- SSM IS USED IN THE ANALYSIS OF COMPLEX SITUATIONS WHERE THERE ARE DIVERGENT VIEWS ABOUT THE DEFINITION OF THE PROBLEM. IN SUCH SITUATIONS EVEN THE ACTUAL PROBLEM TO BE ADDRESSED MAY NOT BE EASY TO AGREE UPON. TO INTERVENE IN SUCH SITUATIONS THE SOFT SYSTEMS APPROACH USES THE NOTION OF A "SYSTEM" AS AN INTERROGATIVE DEVICE THAT WILL ENABLE DEBATE AMONGST CONCERNED PARTIES. I N ITS 'CLASSIC' FORM THE METHODOLOGY CONSISTS OF SEVEN STEPS, WITH INITIAL APPRECIATION OF THE PROBLEM SITUATION LEADING TO THE MODELLING OF SEVERAL HUMAN ACTIVITY SYSTEMS THAT MIGHT BE THOUGHT RELEVANT TO THE PROBLEM SITUATION. BY DISCUSSIONS AND EXPLORATION OF THESE, DECISION MAKERS WILL ARRIVE AT ACCOMMODATIONS (OR, EXCEPTIONALLY, AT CONSENSUS) OVER WHAT KIND OF CHANGES MAY BE SYSTEMICALLY DESIRABLE AND FEASIBLE IN THE SITUATION. LATER EXPLANATIONS OF THE IDEAS GIVE A MORE SOPHISTICATED VIEW OF THIS SYSTEMIC METHOD AND GIVE MORE ATTENTION TO LOCATING THE METHODOLOGY IN RESPECT TO ITS PHILOSOPHICAL UNDERPINNINGS. BUT IT’S IS THE EARLIER CLASSICAL VIEW WHICH IS MOST WIDELY USED IN PRACTICE.
- SSM IS MOST SUCCESSFUL WHEN THE ROOT DEFINITION INCLUDES CERTAIN ELEMENTS THESE ELEMENTS, CAPTURED IN THE MNEMONIC CATWOE, IDENTIFIED THE PEOPLE, PROCESSES AND ENVIRONMENT THAT CONTRIBUTE TO A SITUATION, ISSUE OR PROBLEM THAT REQUIRED ANALYZING. THIS IS USED TO PROMPT THINKING ABOUT WHAT THE BUSINESS IS TRYING TO ACHIEVE. BUSINESS PERSPECTIVES HELP THE BUSINESS ANALYST TO CONSIDER THE IMPACT OF ANY PROPOSED SOLUTION ON THE PEOPLE INVOLVED. THERE ARE SIX ELEMENTS OF CATWOE: CUSTOMERS - WHO ARE THE BENEFICIARIES OF THE HIGHEST LEVEL BUSINESS PROCESS AND HOW DOES THE ISSUE AFFECT THEM? ACTORS - WHO IS INVOLVED IN THE SITUATION, WHO WILL BE INVOLVED IN IMPLEMENTING SOLUTIONS AND WHAT WILL IMPACT THEIR SUCCESS? TRANSFORMATION PROCESS - WHAT IS THE TRANSFORMATION THAT LIES AT THE HEART OF THE SYSTEM - TRANSFORMING GRAPES INTO WINE, TRANSFORMING UNSOLD GOODS INTO SOLD GOODS, TRANSFORMING A SOCIETAL NEED INTO A SOCIETAL NEED MET? WELTANSCHAUUNG (OR WORLDVIEW) - WHAT IS THE BIG PICTURE AND WHAT ARE THE WIDER IMPACTS OF THE ISSUE? OWNER - WHO OWNS THE PROCESS OR SITUATION BEING INVESTIGATED AND WHAT ROLE WILL THEY PLAY IN THE SOLUTION? ENVIRONMENTAL CONSTRAINTS - WHAT ARE THE CONSTRAINTS AND LIMITATIONS THAT WILL IMPACT THE SOLUTION AND ITS SUCCESS?
- HERE’S AN EXAMPLE …
- CLOSING SUMMARY
- CALL TO ACTION
- CALL TO ACTION
- INSPIRATION
- IF YOU WANT A COPY OF THE NOTES, DROP YOUR EMIAL INTO THE CHAT BOX